...I have been visiting EP for quite some time and enjoy (most) of the commentary here. But now I've signed up. However, for reasons made clear in my sig line below, I am mostly here to listen.
S&P Case-Schiller index needs to be compared to wages over the same time period and I think that might bring home just how unaffordable these homes really are.
In Silicon valley the median home price is $540k.
Who...and that includes two adults making over $120k a piece...who can afford that?
We are just getting the prices index instead of the plain fact no way with prices high and any sort of normal 30 year fixed mortgage, can people afford the payments.
I agree with that one and it also doesn't seem to be doing Japan's economy and long term strategy much good either.
They used to be so strategically "on it" and you can see the cracks, the same ones which the U.S. promotes which are pure labor arbitrage, against that nation's own economic interests.
Who are these people demanding various nation's destroy their own economies under the title "globalization" anyway?
Most interesting is Japan's view they are getting squeezed between China and the U.S. Probably true.
so let us say obviously not manufacurting since policy makers seem to be hell bent on killing what's left of it!
I mean this is just driving me nuts. These people will simply not address the well known, well documented at this point, economic structural problems like the very obvious...
changing trade, corporate tax codes, getting real on supporting U.S. industry ...policies that we need and that were also promised during the campaign to get America back on the right economic track.
Rockford, like many other towns and cities in the midwest, has been devastated by globalization. I think I read somewhere where Rockford has or use to have a trade group that would make trips to China to recruit businesses - this solar panel deal may be a product of that.
The land that the city is giving away is right next to the Rockford-Chicago International Airport.
Chinese company is building a solar panel manufacturing plant with tax assistance from City of Rockford. The plant will supposedly provide thousands of jobs. Rockford, Illinois probably has the highest unemployment in the state.
The key (which is beyond hard and why we have so many different perspectives) is how does all of this affect the big macro economic picture?
But to me, the biggest number that freaks me out is 1 in 9 on Food stamps. I try to always put the Federal poverty levels with that, which is what qualifies someone to get food stamps and frankly you cannot rent a cardboard box on that level of income.
But how all of these facts interact, can they cause anything from people who are projecting we're on the Great Depression path and this is simply 1930, to the "happy feet" projections of all is well, don't worry, be happy, recovery is right around the corner.....that's the baffling thing
and implies it's really good we have a large database to hold all of our writings on it.
We have an estimated 150 to 500 banks that may be insolvent. We have banks very tight w/ credit DESPITE a boatload of liquidity poured into the system and very low interest rates. We have foreclosures still going up and CRE is still tanking. Oh, yeah, we have housing prices artificially supported by a tax credit that expires in November.
.. and for the most part I believe well understood. It's no surprise to most of us that concentration of debt within the middle class is purely by design, as the middle class, or working class, has historically strived to emulate the lifestyle of the elite non-working class and only does so by virtue of the easy money debt trap from which to borrow that illusion from the money changers (with interest). They are distinct from the working class moreso in that they do not work at all, but rather put their wealth to work for them in the world's rigged speculation casino (in other words, what you refer to as financialization).
If you mean to point out that the destruction of the middle class is tantamount to killing the golden goose, then in fact I submit that it IS the point to milk the golden goose to death, for as unrepayable debt becomes a nations problem vs. the problem of a certain class then the real spoils of monetarism are reaped - that nation's sovereignty.
But again, I think that plan is well known. It's been used successfully so many times before.
If we are going to maintain the status quo then we have to reinflate the bubble. However, how do you re-inflate a bubble when creditors and debtors are already too leveraged?
Would the stress tests be a waste of time? I believe regulators and banks already know the truth - the financial sector is for the most part insolvent.
Ben, can we now have the 5% on our retirement savings we factored into our planning? Or must we labor in purgatory annother 10 years? No COLA for Social Security, but billions for your banker constituency.
To borrow a quote from a long ago 3rd party campaign, "Not a dime's worth of difference."
The ruling class always warned us against "Class Warfare." Are we there yet?
Frank T.
Just a FYI, you can Sign up/login for an account and thus bypass the moderation queue, obnoxious awful CAPTCHA. It's kind of like DK in that everyone has their own blog, plus a comment tracking system.
Yeah, Krugman scored a home run this time because lord knows the entire American work force, middle class is so sick of being discounted and ignored....we're all cheering at the new term!
...I have been visiting EP for quite some time and enjoy (most) of the commentary here. But now I've signed up. However, for reasons made clear in my sig line below, I am mostly here to listen.
Not pretending to be an economist
S&P Case-Schiller index needs to be compared to wages over the same time period and I think that might bring home just how unaffordable these homes really are.
In Silicon valley the median home price is $540k.
Who...and that includes two adults making over $120k a piece...who can afford that?
We are just getting the prices index instead of the plain fact no way with prices high and any sort of normal 30 year fixed mortgage, can people afford the payments.
of the number of credit defaults and foreclosures? Possibly.
There are some serious structural flaws that are showing but traditional media via business media outlets doesn't want to upset the Top 1%
RebelCapitalist.com - Financial Information for the Rest of Us.
Very interesting post on HuffPo from a Japanese Democratic party official, Yukio Hatoyama, Japan must shake off U.S.-Style Globalization.
He says this mentality destroys human dignity....
I agree with that one and it also doesn't seem to be doing Japan's economy and long term strategy much good either.
They used to be so strategically "on it" and you can see the cracks, the same ones which the U.S. promotes which are pure labor arbitrage, against that nation's own economic interests.
Who are these people demanding various nation's destroy their own economies under the title "globalization" anyway?
Most interesting is Japan's view they are getting squeezed between China and the U.S. Probably true.
That one sure seems secure and an area for growth!
You probably saw my Stupid is as Stupid Does analogous rant...
so let us say obviously not manufacurting since policy makers seem to be hell bent on killing what's left of it!
I mean this is just driving me nuts. These people will simply not address the well known, well documented at this point, economic structural problems like the very obvious...
changing trade, corporate tax codes, getting real on supporting U.S. industry ...policies that we need and that were also promised during the campaign to get America back on the right economic track.
Rockford, like many other towns and cities in the midwest, has been devastated by globalization. I think I read somewhere where Rockford has or use to have a trade group that would make trips to China to recruit businesses - this solar panel deal may be a product of that.
The land that the city is giving away is right next to the Rockford-Chicago International Airport.
RebelCapitalist.com - Financial Information for the Rest of Us.
this is jack shit in terms of what a real, complete supply chain manufacturing plant would employ.
i.e. evidence that it is just final assembly shell game with most of the jobs, profits, income, etc. being done offshore.
So, we're now giving state and local tax incentives to beg for scraps.
Chinese company is building a solar panel manufacturing plant with tax assistance from City of Rockford. The plant will supposedly provide thousands of jobs. Rockford, Illinois probably has the highest unemployment in the state.
Link
RebelCapitalist.com - Financial Information for the Rest of Us.
The key (which is beyond hard and why we have so many different perspectives) is how does all of this affect the big macro economic picture?
But to me, the biggest number that freaks me out is 1 in 9 on Food stamps. I try to always put the Federal poverty levels with that, which is what qualifies someone to get food stamps and frankly you cannot rent a cardboard box on that level of income.
But how all of these facts interact, can they cause anything from people who are projecting we're on the Great Depression path and this is simply 1930, to the "happy feet" projections of all is well, don't worry, be happy, recovery is right around the corner.....that's the baffling thing
and implies it's really good we have a large database to hold all of our writings on it.
We have an estimated 150 to 500 banks that may be insolvent. We have banks very tight w/ credit DESPITE a boatload of liquidity poured into the system and very low interest rates. We have foreclosures still going up and CRE is still tanking. Oh, yeah, we have housing prices artificially supported by a tax credit that expires in November.
RebelCapitalist.com - Financial Information for the Rest of Us.
.. and for the most part I believe well understood. It's no surprise to most of us that concentration of debt within the middle class is purely by design, as the middle class, or working class, has historically strived to emulate the lifestyle of the elite non-working class and only does so by virtue of the easy money debt trap from which to borrow that illusion from the money changers (with interest). They are distinct from the working class moreso in that they do not work at all, but rather put their wealth to work for them in the world's rigged speculation casino (in other words, what you refer to as financialization).
If you mean to point out that the destruction of the middle class is tantamount to killing the golden goose, then in fact I submit that it IS the point to milk the golden goose to death, for as unrepayable debt becomes a nations problem vs. the problem of a certain class then the real spoils of monetarism are reaped - that nation's sovereignty.
But again, I think that plan is well known. It's been used successfully so many times before.
Most of the layoffs have come from manufacturing and I'm sure this is true and small manufacturing needs credit, help IMMEDIATELY...
but what is suspect are the executives being quoted. General Dynamics for example ain't no small manufacturing business.
THE SYSTEM IS FU*KING INSOLVENT. PRESS RESET.
Manufacturers Seek $20 Billion in Loan Guarantees
RebelCapitalist.com - Financial Information for the Rest of Us.
If we are going to maintain the status quo then we have to reinflate the bubble. However, how do you re-inflate a bubble when creditors and debtors are already too leveraged?
Would the stress tests be a waste of time? I believe regulators and banks already know the truth - the financial sector is for the most part insolvent.
RebelCapitalist.com - Financial Information for the Rest of Us.
Thanks for the welcome...and for the work on this site.
the past stress tests are hitting past the "worse case scenario" which is why so many people are calling for them to be redone.
Ben, can we now have the 5% on our retirement savings we factored into our planning? Or must we labor in purgatory annother 10 years? No COLA for Social Security, but billions for your banker constituency.
To borrow a quote from a long ago 3rd party campaign, "Not a dime's worth of difference."
The ruling class always warned us against "Class Warfare." Are we there yet?
Frank T.
going to function properly when the credit providers are loaded with all this toxic waste on their books?
RebelCapitalist.com - Financial Information for the Rest of Us.
Banks can earn their way out this mess. Sure, and I have ocean front property in Kansas.
At some point, this Administration is going to have to piss off some powerful special interests for a change. Or wind up the next Herbert Hoover.
RebelCapitalist.com - Financial Information for the Rest of Us.
Just a FYI, you can Sign up/login for an account and thus bypass the moderation queue, obnoxious awful CAPTCHA. It's kind of like DK in that everyone has their own blog, plus a comment tracking system.
Yeah, Krugman scored a home run this time because lord knows the entire American work force, middle class is so sick of being discounted and ignored....we're all cheering at the new term!
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